MULTIPLE CHOICE QUESTIONS (SALES) SORIANO

1. A contract whereby one of the contracting parties oblige himself to transfer the
ownership of and to deliver a determinate thing and the other to pay thereof for a price
certain in money or its equivalent is a contract of:
Answer: B. Sale

2. The following are the essential elements of a contract of sale, except:

Answer: D. warranty against eviction and against defects

3. The following are the characteristics of a contract of sale except:

Answer: B, real, which requires the delivery of the object of the contract of sale for its
perfection

4. One of the following characteristics of dacionenpago is also a characteristic of a contract

of sale. Which is it?
Answer: D. Ownership of the object is transferred to the other party

5. The following are characteristics of a contract of sale except for one which refers to
payment by cession. Which characteristics refers to payment by cession?
Answer: D. Assignee of the property acquires the right to sell the thing but not the ownership
therof.

6. The following items pertain to either a contract of sale or a contract to sell.

i. Ownership of the thing sold Is transferred upon delivery
ii. Onwership of the thing is transferred to the buyer at some future time
iii. The risk of loss is on the buyer.
iv. The risk of loss is on the seller.
Answer: D. Items I and III pertain to a contract of sale

7. One of the following is not a requisite of the object of a contract of sale. Which is it?
Answer: D. Vendor must have the right to transfer the ownership of the thing at the time of
sale

8. The following items pertain to emptio rei speratae or emptiospei.

I. The sale of a future thing
II. The sale of hope or expectancy
III. The sale of a present thing
IV. The thing sold must come into existence
Answer: B. Items II and III pertain to emptiospei

9. Santiago sells to Bermejo 500 sacks of rice at a P1000,00 per sack from the stock then
stored in the warehouse of Santiago. Unknown to the parties, the warehouse contains only
480 sacks of rice. What is the status of the contract between Santiago and Bermejo?
Answer: c. The entire sale is valid up to 500 sacks of rice Bermejo becomes the owner of the
whole stock available and Santiago must deliver the deficiency of 20 sacks of rice.

10. Somera sells to Buenviaje at P50 per gallon 300 gallons of gasoline stored in his
truck'stank which, unknown to the parties, contains 500 gallons gasoline. What is the status
of the Contract ofsale between Somera and Buenviaje?
Answer: C. The sale is valid up to 300 gallons of gasoline. Buenviaje becomes the owner of
3/5 of the whole stock, while Somera becomes the owner of 2/5 thereof.

11. San Miguel Corporation, which maintains a professional basketball team, entered into a
contract with Armstrong Rubber Company for the latter to provide a pair of rubber shoes to
the former’s two imported basketball players, Charles Jordan and Michael Barkley, Company
was instructed to make a pair for either or both players in case the ompany did not
manufacture shoes of their size. No pair was, however, immediately available for both the
players. Charles Jordan, who is 6’5 tall and wears size12 rubber shoes, was given a pair in
the following day from 300 pairs that Armstrong was in the process of manufacturing for its
customers at the time the orders were received.. Michael Barkley , who is 7' tall and wears
size 18 shoes, was provided three days later, with a pair that was specially made for him
since Armstrong does not make shoes of his size. What kind of contracts were entered into
for the shoes provided to the two basketball players?
Answer: B. The contract for the pair of shoes provided to Charles Jordan is a contract of sale,
while that for Michael Barkley is a contract for a piece of work.

12. S and B entered into a contract whereby S transferred to B a specific car for the price of
P200,000.00, while B gave to S P90,000.00 in cash and a diamond ring worth P110,000.00.
The heading of the written contract signed by the parties reads "Contract of Sale".
Answer: B. The. contract is a valid contract of sale its intended by the parties regardless of
whether the monetary consideration is more or less than the value of theproperty
consideration.

13. The price in a contract of sale is certain, except:

Answer: C. if the fixing of the price is left to the discretion of one of the contracting parties
and the price fixed is not accepted by the other party

14. On January 1, S orally sold to B a specific ring for P450.00. The parties agreed that S
shall deliver the ring to B on January 5, while B shall pay the price on January 7.
Answer: B. The contract is perfected on January 1, when the parties had a meeting of minds
on the object and price.

15. A sum of money paid, or thing delivered upon the making of a contract for the sale of
goods, to bind the bargain, the delivery and acceptance of which makes the final assent of
both parties to the contract
Answer: B. Earnest Money

16. S orally offered to sell a certain diamond ring to B for P50,000 B accepted the offer and
to prove that he was earnest, he gave S P1,000.00 The parties agreed that the delivery of the
ring and the payment of the price would be made 30 days later. On due date:
Answer: B. S may collect from P49,000.00

17. On June 1, 2015, S sold to B 50 units- of machines which were scheduled to arrive from
Japan the following day on board the vessel "MT Nippon Mare" The sale was evidenced by
an invoice identifying each machine by serial number. Each machine was priced at
P10,000.00 Unknown to the parties, 30 units were damaged beyond repair by seawater on
May 31, 2015. Based on the foregoing, which of the following statements is incorrect?
Answer: C. S may require payment of the whole shipment from B since S was not aware of
the damage caused on the machines at the time of sale
18. It refers to the delivery of the thing sold from hand to hand in case of movables, or the
taking of possession with respect to immovables, in the presence and with the consent of the
vendor.
Answer: A. Actual or real delivery.

19. On May 1, 2015, S sold to B through a private instrument 20 sacks of corn stored in the
only warehouse of S, On May 10, 2015, S delivered the keys to the warehouse to B The
delivery made by S to 13 is known as:
Answer: B. Symbolic delivery by traditioclavium

20. Delivery of incorporeal property may be made through any of the following means,
except:
Answer: D. execution of private instrument

21. One of the following statements on the transfer of ownership of the thing in the “sale on
trial: is incorrect. What is it?
Answer D. Ownership of the thing is transferred to the vendee upon delivery.

22. On March 1, 2015, S sold and delivered to B a television set for P10,000.00 "on sale or
return" giving up to B up to March 16, 2015 within which to return the television set or pay the
price. On March 110, 2015, the television set was burned through no fault of B. Based on the
foregoing, which of the following statements is incorrect?
Answer: B. S must bear the loss since the time for the return of the television set had not yet
expired.

23. In one of the following cases, delivery of the goods to a carrier for the purpose of
transmission to the buyer transfers ownership to the latter. Which one is it?
Answer: d. When the owner does not reserve the right of possession or ownership of the
thing sold upon delivery to the carrier.

24. In a contract of sale of personal property the price of which is payable in installments,
the vendor may exercise any of the following remedies, except to:
Answer: c. foreclose the chattel mortgage on the property if the vendee's failure to pay cover
two or more installments and recover any deficiency after the foreclosure sale if they have
stipulated it.

25. Baldomero bought a residential house and lot from Sta. Ana Realty for V250,000.00
giving a down payment of P10,000.00 and promising to pay the balance of P240,000.00 in 20
years in mouthly installments of P1,000.00. After paying 72 installments, Baldomero
defaulted in the payment of the 73rd installment and subsequent ones. Despite the grace
period he had earned, he was not able to make any further payments.
Accordingly, Sta. Ana Realty cancelled the sale. flow much cash surrender value is Baki-
rnero entitled to receive?
Answer: a. P43,100.00

26. S stole a ring belonging to 0. Subsequently, the ring was offered for sale at a public
auction where X, who was not aware that the ring was stolen, bought it. A few weeks later, 0
saw the ring and recognized it as his. Based on the foregoing information, which of the
following statements is correct?
Answer: b. 0 may recover the ring from X but he has to reimburse X since X acquired title to
the ring.
27. Where the seller of goods has a voidable title thereto, but his title has not been avoided
at the time of the sale, the buyer acquires title to the goods. Such acquisition of title has the
following requisites, except the:
Answer: d. party from whom the seller obtained the goods must ratify the sale.

28. An unpaid seller has the following rights, except

Answer: c. a right of repurchase. d. a right to rescind.

29. An unpaid seller lose his lien on the goods in the following cases, except:
Answer: d. when he has obtained judgment for the price of the goods.

30. Three of the following are the requisites in order that an unpaid seller may exercise his
right of stoppage of transitu. Which one is not?
Answer: b. The seller has not parted with the possession of the goods.

31. Goods are still in transit:

Answer: d. if the goods are rejected by the buyer, and the carrier or other bailee continues in
possession of them, even if the seller has refused to received them back.

32. An unpaid seller's right to resell the goods is available in the following cases, except:
Answer: d. when the seller has lost his lien on the goods.

33. Barrameda bought a piece of land from Sarmiento for a lump sum of P120,000.00. Aside
from mentioning the boundaries in the contract which is required in the sale of real estate, the
contract also states that the piece of land consists of 1,000 square meters. Before delivery,
Sarmiento discovered that the piece of land actually contains 1.200 square meters.
Answer: c. Sarmiento must deliver all the 1,200 square meters; Barrameda has to pay only
P120,000.00.

34. Sison sold a registered piece of land to Bautista on May 1, 2015 in a public instrument.
On May 3, 2015, Sison sold ' in a private instrument the same piece of land to Cruz, who took
physical possession of the land. Neither buyer was aware of the sale made to the other.
Answer a. The land belongs to Bautista.

35. Refer No. 34. Assume that on May 5, 2015, Sison sold the land in a public instrument to
Domingo who was not aware of the two previous sales. Domingo then registered the sale
with the Register of Deeds.
Answer: c. The land belongs to Domingo.

36. On June 1, 2015, Sanchez sold to Borlaza in a private instrument a certain computer.
Two days later, Sanchez orally sold the same computer to Contreras who immediately took
possession of the computer. Neither party was aware of the sale made to the other.
Answer: b. The computer belongs to Contreras.

37. This refers to the implied warranty on the part of the seller that he has the right to sell the
thing at the time when ownership is to pass, and that the buyer from that time shall have and
enjoy legal and peaceful possession of the thing
Answer: b. Warranty against eviction.
38. Three of the following are the requisites in order that the vendee may enforce the
vendor's liability in case of eviction. Which one is not?
Answer: b. The vendee must have appealed from such judgment rendered against him

39. This refers to an encumbrance imposed upon an immovable for the benefit of another
immovable belonging to a different owner.
Answer: a. Easement or servitude

40. Three of the following are the requisites in order that the buyer may enforce the seller's
liability for hidden defects. Which one is not?
Answer: d. The defects must be capable of determination by an expert.

41. Alessandra purchased from Rose Tan's Department Ston two pieces of imported
identical bathrobe, one of whit was embroidered with HIS and the other with •HERS which
she planned to give to his friends Jules an Assunta as a wedding present. She inspected the
item very carefully with the assistance of the store clerk befor paying for them. While she was
wrapping them short after she arrived home, she noticed that the hem of th 'HERS" bathrobe
had disintegrated because it was loosel sewn, which damage was not apparent because of th
many colors of the apparel.
Answer: a. Alessandra can rescind the sale of both pieces of bathrobe.

42. The vendor shall be liable for the death of the animal soh when the following requisites
are present, except:
Answer: c. the disease must be redhibitory.

43. The justified refusal of the buyer to accept the good, produces the following effects,
except:
Answer: d. buyer is obliged to constitute himself as depositary until he returns the goods.

44. In three of the following cases, Lhe buyer is not entitled to suspend the payment of the
price. Which one will give him the right to suspend payment?
Answer: a. Disturbance in the possession or ownership of the thing purchased.

45. A contract of sale with a right to repurchase and other contracts including a contract
purporting to be an absolute sale shall be presumed to be an equitable mortgage in the
following cases, except when the:
Answer: d. vendee binds himself to pay the taxes due.

46. An owner of a rural land has the right of legal redemption of an adjoining rural land sold
if the following requisites are present, except when the:
Answer: d. grantee owns an urban land.

47. This refers to the right of an adjoining owner of an urban land to be given preference to
the purchase of a small piece of urban land which is for speculation before it is offered for
sale to others.
Answer: c. Right of pre-emption.

48. A, B, and C, are co-owners of an undivided parcel of land. On May 1, A sold his share to
X; on June 1, B sold his share also to X; and on July 1, C sold his share also to X. Each sale
was with a right to repurchase.
Answer: c. Each co-owner may exercise his right of redemption only with respect to his share
49. R, S and T are co-owners of an undivided parcel of land. sold his 1/3 interest to T in a
deed of absolute sale. Which is correct?
Answer: b. S cannot exercise the right of redemption

50. T steals the goods of 0 and deposits them in tilt warehouse of W. W issues to t a
warehouse receipt which by its terms indicates that goods are to be delivered to the order of
T. T, thereafter, negotiates the receipt to H who purchases the. document in good faith and
for value
Answer: d. H can obtain delivery of the goods from W because the acquisition by H of the
warehouse receipt in good faith cured the defect in T's title.

51. 0 delivered certain goods to C. a common carrier, which issued to 0 a bill df lading
stating that the goods are to be delivered to bearer. Without P's fault, the bill la was stolen by
T who thereafter negotiated the document by mere delivery to H, a purchaser for value and
without notice of the defect in the title of T.
Answer: b. The negotiation of the bill of lading by T to H is valid. T's defective title does not
have any effect on the validity of the negotiation. II may not obtain delivery of the goods from
C because H acquired whatever title T had over the document.

52. D obtained from C a loan amounting to Pot 50,000.00, the same being secured by a
mortgage on D's l. Thereafter, C assigned his credit right to T with notice to D. Based on the
foregoing facts, which of the following statements incorrect?
Answer: a. T cannot collect from D if ID does not give his consent to the assignment.

53. A kind of mortgage which, although lacking some formality, form of words, or requisites
prescribed by law, shows the intention of the parties to charge real property as security for
debt and contains nothing impossible or contrary to law is known am:
Answer: b. equitable mortgage.

54. If a movable property is sold separately to two or more different vendees, ownership
shall belong to the person:
Answer: d. who in good faith first took possession of the Property.

55. A contract of sale is perfected upon:

Answer: c. the meeting of the minds on the thing which is the object of the contract and upon
the price.

56. It is a contract by virtue of the terms of which the parties thereto promise and obligate
themselves to enter into another contract at a future time, upon the happening of certain
events, or the fulfillment of certain conditions.
Answer: b. Contract of option

57. A contract of sale is not a:

Answer: d. real contract.

58. The following may not he valid objects of a contract of sale, except.
Answer: c. future goods.

59. This is a kind of constructive delivery where the vendor remains in possession of the
property sold, such as by virtue of a lease agreement with the vendee.
Answer: c. traditio constitutum possessonum.
60. When the goods are delivered to the buyer, the ownership thereof passes to the buyer
in:
Answer: b. sale or return

61. S promised to sell his car to B for P200,000.00 giving B 30 days to decide. B
accepted the promise of S and informed S that he (B) would make known his decision before
the lapse of 30 days. He also gave S P2,000.00 as consideration so that S would hold on to
his promise. The contract entered into between S and B and the consideration given by B to
S are known as:
Answer: a. Option contract and option money, respectively.

62. Refer to No. 61.

Answer: S may not withdraw his offer before the lapse of 30 days.

63. The Recto Law applies to which of the following examples of sale?
Answer: d. Sale of a piano on installments where the buyer constituted a chattel mortgage on
the piano

64. S sold to B a lot through a deed of absolute sale duly acknowledged before a notary
public. Three days later, S sold the same lot to X, also through a deed of sale duly
acknowledged before a notary public. X had the sale registered with the Register of Deeds.
Neither B nor X was aware of the sale made by S to the other and neither took physical
possession of the lot. Who is the present owner of the lot?
Answer: b. X, because he registered the sale in good faith

65. B purchased from S a laptop computer worth P100,000.00. The terms of sale provide for
a down payment of P20,000.00 with the balance payable in 8 equal monthly installments To
secure the balance, S required B to execute a chattel mortgage on the laptop computer and a
real mortgage on 13's lot. B complied with all the requirements but defaulted in the payment
of the third and fourth installments. These remedies are available to S except one. Which is
it?
Answer: d. Foreclose the chattel mortgage and thereafter foreclose the real mortgage in case
of deficiency.

66. S and b entered into a contract whereby S transferred to B a specific piano for the price
of P80,000.00, while B gave to S cash of P30,000.00 and a diamond ring worth P50,000.00.
What kind of contract between S and B?
Answer: A. contract of barter.

67. One of the distinctions between option money and earnest money is that earnest money
is:
Answer: c. proof of the perfection of the contract of sale.

68. This refers to the warranty of the seller that he has the right to sell the thing at the time
when ownership is to pass, and which can be enforced if the buyer is deprived of the property
sold by a final judgment in court.
Answer: c. Warranty against eviction.

69. P, who was in Hong Kong, made an overseas call to A, his friend, to sell P's lot in
Quezon City immediately as P needed cash. Accordingly, A sold the lot to B. The deed of
sale was in a public document. The sale of P's lot is:
Answer: d. void.

70. One of the distinctions between a contract of sale and a contract for a piece work is that
a contract for a piece of work:
Answer: a. is not governed by the Statute of Frauds

71. A and B are co-owners of a rural lot not exceeding hectare. The lot is surrounded on its
four sides al follows: on the North, by the road; on the East, by the lot of X consisting of 2
hectares; on the South, by the lot of 1 consisting of 2 15 hectares; and on the West, by Z's lo
consisting of 2 3% hectares. A sells his undivided interest in the agricultural lot to T, who
owns several hectares o rural land in the area. Who has the right of legal redemption over the
undivided interest in the lot sold by a to T?
Answer:a. b

72. It is an affirmation of fact or any promise by the sent' relating to the thing which has a
natural tendency to induce the buyer to purchase the same, relying On such promise or
affirmation
Answer: c. Warranty

73. In one of the following cases, the ownership of the thing object of the contract is
transferred to the other party upon delivery
Answer:c. Sale or return

74. Under the °Realty Installment Buyer Act', the buyer of real estate on installment
payments may pay an installment defaulted without additional interest if he has paid at least
two years of installments. The law is applicable to sales/transactions involving:
Answer:c. residential lots

75. S, the owner of a rent-a-car business, leased one of his cars to B for one month. On the
day of the expiration of the lease and while B was still in physical possession of the car, B
offered to buy the car from S. for P200,000.00. Believing the price to be a good one, S readily
accepted B's offer and then and there executed a deed of absolute sale in favor of B who
immediately paid the price in cash. Thereafter, B drove away from the place of S.
Answer: c. The delivery of the car by S to B is by traditio brevi manu.

76. B called on S at the shoe factory of S for the latter to make a pair of shoes which B
would be needing in the play 'Romeo and Juliet.' B provided S with the description of the pair
of shoes that he wanted since S did not manufacture the kind of shoes that B needed. S
quoted a price of P1,000.00 which B agreed to pay upon delivery to him of the pair of shoes.
Since S and B had been neighbors for a lung time, their agreement was sealed with a
handshake.
Answer: c. The contract between S and B is enforceable even if it is still executory.

77. Which of the following contracts of sale is void?

Answer: b. Sale of a piece of land in a public instrument made through an agent whose
authority was given orally by the principal.

78. D deposited his goods in the warehouse of W who issued to D a warehouse receipt
stating that the goods are to be delivered to bearer. Thereafter, A obtained possession of the
warehouse receipt from D in exchange for what A claimed to be a bar of gold, which,
however, was discovered by D to be fake. D demanded the return of the warehouse receipt
from A but the same had already been negotiated by A to H who purchased the document for
value, in good faith and without notice that D was deprived possession thereof by fraud. The
negotiation by A to h is:
Answer:b. valid.

79. B purchased a pair of leather shoes from the store of S. Shortly after leaving the store, B
decided to return and requested S, the owner, to place a protective rubber covering on the
sole of each shoe. Since the job required at least 30 minutes to complete, 13 left the store of
S to shop at the neighboring stores. When he returned to the store of S after 30 minutes, the
pair of shoes was nowhere to be found. It turned out that C, a sales clerk, had sold the pair of
shoes that B bought to X, another customer.
Answer:a. X acquired ownership of the pair of shoes earlier bought by B

80. S sold 500 shares of stock of San Manuel Corporation to B at P50.00 per share. The
transfer of the ownership of the shares of stock may be made through any of the following
means, except:
Answer: d. the issuance by S of the official receipt for the full payment of the purchase price
of the shares by B.

81. Which of the following documents of title requires indorsement and delivery for its
negotiation?
Answer: c. A warehouse receipt which states that the goods are to be delivered to bearer but
the bearer indorsed it to a specified person.

82. S and B executed a deed of absolute sale involving a parcel of land supposedly
containing 2,000 square meters. B paid a lump sum of P2,200,000.00 for the purchase.
Based on the foregoing facts, which of the following statements is correct?
Answer: c. If the parcel of land actually contains 2,200 square meters, S must deliver all of
2,200 square meters with B still paying the amount of P2.200,000.00.

83. S sold a specific parcel of land separately to the following persons: on July 1, 2015, to X,
in a public document; on July 5, 2015 in a private document to Y, who took physical
possession of the land; and on July 9, 2015, to 2, who registered the sale with the Register of
Deeds. Neither X, Y nor Z was aware of the sale made to the other two buyers. Who is the
owner of the parcel of land?
Answer: c. Z, because he registered the sale

84. In which of the following cases is the seller not obliged to make any payment to the
buyer for breach of warranty against eviction?
Answer: d. When there was a stipulation exempting the seller (who was in good faith) from
breach of warranty and the waiver was made by the buyer with knowledge of the risks of
eviction.

85. Mother Lilly purchased from Santiago Farms four horses with different colors: a white, a
gray, a black, and a brown, which Mother Lilly intended to use in a movie to be starred in by
four movie actors each one of whom represents one of the colors. Each horse was certified
to be fit by the veterinarian who was hired by the parties to examine them. Mother Lilly paid a
separate price for each of the horses. During the filming of the movie, the brown horse was
always sick and could not function as the three others. It was subsequently discovered that it
was suffering from an incurable heart ailment.
Answer: b. Mother Lilly may ask for the rescission of the sale of all the horses
86. The buyer is obliged to pay interest for the period between the delivery of the thing sold
and the payment of the price in the following cases, except if:
Answer: d. none of the foregoing.

87. Earnest money possesses three of the following characteristics. Which is the exception?
Answer: d. It is paid as a consideration for the purpose of holding one to his promise to buy or
sell a determinate thing for a certain period.

88. S sold his farm lot to B with S reserving his right to repurchase the property within five
years from the date of the sale. Based on the foregoing facts, which of the following
statements is incorrect?
Answer: a. The sale is subject to a suspensive condition.

89. D borrowed P50,000.00 from C. The obligation is secured by a mortgage of D's

house and lot. Thereafter, C assigned his credit right to T. Based on the foregoing facts,
which of the following statements is incorrect?
Answer: b. The assignment of the credit right did not carry with it the assignment of the
mortgage

90. A contract of sale possesses three of the following characteristics. Which is the
exception?
Answer: d. Real, because the object of sale must be delivered for the perfection of the
contract.

91. S sold his lot to B reserving his right to repurchase the same within 5 years from the date
of the execution of their agreement. The safe together with the right to repurchase Was
registered with the Register,of Deeds. Two years after the execution of the sale, B sold the
same lot to X who was not aware that S reserved his right to repurchase the lot.
Answer: b. The sale by S to B is subject to a resolutory condition.

92. Refer to Item 91.

Answer: a. S may repurchase the lot from X within the five-year period although X was not
aware of the reservation of the right to repurchase.

93. B wanted to buy the car of S for P100,000.00 and to show that he was in earnest, he
gave to S P2,000.00 which S accepted. There was no written instrument signed by S and B
to incorporate their agreement. Based on the foregoing, which of the following statements
does not pertain to the contract?
Answer: c. B, thereafter, must pay C the amount of P100,000.00.

94. When the buyer is justified in refusing to accept the goods being delivered to him and
has relayed such refusal to the seller, such refusal produce the following effects, except:
Answer: d. d. buyer automatically becomes a depositary of the goods.

95. The unpaid seller, in addition to his right to retain the goods while he is in
possession of them, has the following rights, except the right:
Answer: d. to bid when the goods are resold.

96. One of the following is a natural element of a contract of sale.

Answer: d. The seller's warranty against hidden defects.
97. Cr January 1, 2015, Santos offered to sell his only diamond ring for P50,000.00 cash to
Bersola who was interested in buying the same. Santos told Bersola that he was giving the
latter up to January 31, 2015 to decide whether to buy the ring or not. Bersola agreed to the
option and gave Santos option money of P500.00. On January 18, 2015, Santos found
another buyer who was willing to pay P70,000.00 cash. Santos personally visited Bersola to
inform him that he was withdrawing his offer unless Bersola agreed to buy the ring for
P70,000.00.
Answer: c. Santos cannot withdraw the offer because the option is founded upon a
consideration of P500.00.

98. S and B executed a deed of absolute sale duly acknowledged before a notary public
whereby S conveyed his car to B for P100,000.00. B, however, informed S that he would be
going away on a business trip and that he would be taking the car from the place of S when
he returned after two weeks. Three days after the sale of the car to B, S sold the same car to
X through a deed of absolute sale which was also acknowledged before a notary public. X
then drove the car away from the place of S and had the sale recorded with the Land
Transportation Office which issued to him a certificate of registration of the car in his name.
Neither B nor X was aware of the sale made to the other until B returned from his business
trip.
Answer: c. X acquired title to the car because S appeared to be the owner in the record of the
Land Transportation Office

99. D gives his ring worth P25,000.00 to C in consideration of C's giving of

P10,000.00 and a bracelet worth P15,000.00 to D. Based on the foregoing facts, which of the
following statements is incorrect
Answer:c. The transaction is barter regardless of the intention of the parties because the
bracelet is of more value than P10,000.00.

100. S, the proprietor of a rent-a-car enterprise, sold is business and his fleet of 10 cars to B
for a lump sump of P3,000,000.00. S physically delivered the permits and other papers for
the operation of the business and the vehicles to B at the latter's office except for one car
which the parties agreed shall be leased by S for one month while he was winding up his
affairs in the Philippines as he was then leaving for abroad. In the meantime, the contract of
sale and the contract of lease, though already signed by the parties, have not been
acknowledged before a notary public, and hence, were still private instruments.
Answer: b. The ownership of the car leased by S has been transferred to B although there
was no physical delivery thereof to B.

101. King Gems Company a jewelry manufacturer, shipped five dozen necklaces to Queen
Jewelry Store. The shipment was made tinder a written agreement allowing Queen Jewelry
Store to return the necklaces within a period of one month from delivery. Based on the
foregoing' facts, which of the following statements is incorrect?
Answer:c. If the necklaces are destroyed by fire without the fault of Queen, Queen need not
pay the price thereof.

102. On January 3, 2015, D dejxisited his goods with W, warehouseman, who issued a
warehouse receipt which states that the goods are to be delivered "to the order of D. On
January 5, 2015, ID indorsed the receipt to A. On January 8, 2015, however, D sold the
goods represented by the receipt to X who informed W immediately of the sale to him of the
goods by D. At that time, W was not aware that D had indorsed the receipt to A.
Answer:a. a. A acquired title to the goods as represented by the receipt at the time such
receipt was indorsed to him

103. One of the following statements pertaining to a sale by auction is incorrect. Which is it?
Answer: d. The seller may validly participate in the bidding without prior notice to the bidders.

104. S sold a specific laptop computer to B for P120,000.00 with B giving a down payment of
P10,000.00 and promising to •0•, the balance in 11 equal monthly installments. b likewise
executed a chattel mortgage on the computer and a real mortgage on his lot to secure the
payment of the balance of the purchase price. After paying the first two installments, B
defaulted in the payment of next three installments. S may avail himself of any of the
following remedies except to:
Answer: c. foreclose the chattel mortgage and recover an' deficiency during the foreclosure
sale if there is an agreement to that effect.

105. B bought from Century Properties, Inc. a 1,000 square meter lot located beside the
Manila International Airport on which he intended to construct it warehouse condominium.
The terms of the sale provided for the payment of the contract price of P300,000.00 in 60
equal. monthly installments of P5,000.00 each. After having paid 36 installments, B defaulted
in the payment of the succeeding installments. As a consequence, Century cancelled the
sale. B now wants to claim the return of the cash surrender value of the payments he had
made pursuant to the "Realty Installment Buyer Act", otherwise known as the Maceda Law.
Answer: a. B is entitled to a cash surrender value of 50%of P180,000.00, or P90,000.00
under the Maceda Law.

106. S shipped FOB Manila, perishable goods worth P50,000.00 to B who is based in Cebu.
B remitted a check amounting to P50,000.00 for the price of the goods. While the carrier was
on its way to Cebu, S was informed by his bank that the check issued by B was dishonored
for insufficient funds. On further inquiry, he learned that B had become insolvent.
Accordingly, S obtained physical possession of the goods from the carrier. After notifying B,
S resold the goods.

Case A - If the goods are resold for P52,000.00, the profit of P2,000.00 belongs to B since
title had already passed to him.
Case B - If the proceeds of sale, net of incidental expenses, amounted to P47,000.00, S can
recover the loss of P3,000.00 from B.
Answer:d. Case A is false; Case B is true.

107. Li visited a store selling lamps. light bulbs and similar items. He informed the seller that
he was buying 2 units of a 50-watt 'Phillips" bulb. Though he intended to use the 2 bulbs for
the headlight of his car, he did not inform the seller of his purpose. Thereafter, he installed
the 2 units of "Phillips" bulb on his car but they did not function. Based on the foregoing,
which of the following statements is incorrect?
Answer: a. The seller is liable for breach of warranty of fitness for a particular purpose.

108. It refers to the right which the vendor reserves to himself to repurchase the thing sold,
with the obligation to reimburse the vender of the price, the expenses of the contract, any
other legitimate payments made therefor and the necessary and useful expenses made on
the thing sold.
Answer:a. Conventional redemption
109. Palmares ordered from Superstar Sportswear Company, a sportswear manufacturer, 2
dozens of jackets and jogging pants styled and designed by Palmares for the use of his
basketball team. This was not the type of sportswear normally manufactured by Superstar.
The price agreed upon by the parties was P72,000.00. After the articles were manufactured,
Palmares refused to accept them and claimed that he was not liable since the contract did
not comply with the Statute of Frauds.
Answer: a. Palmares is liable although the contract was not in writing.

110. B received at his office a brand-new computer printer. The printer was delivered to B
after the latter filled up a coupon which he cut out from a magazine where Supreme
Machines Company placed an advertisement allowing a "Free Trial for 7 days" of the printer
to prospective customers. After trying the printer shortly after its delivery to him, B placed it
on a table located just beside a glass window. B forgot all about the printer until two weeks
later. By that time, the plastic parts of the printer had been deformed because of its long
exposure to sunlight such that the printer would no longer function.
Answer: b. B must pay for the price of the computer.

111. Salvosa shipped FOB Manila goods worth P20,000.00 to Bordelo who is based in Davao
City. While the carrier was on a stopover in Cebu City, Salvosa was informed by his bank that
the check issued by Bordelo was dishonored by reason of insufficiency of funds. He also
learned from the Credit Bureau that Bordelo had become insolvent. Accordingly, Salvosa
notified the carrier that he was taking possession of the goods. The right availed of by
Salvosa in the situation is known as the right of:
Answer: a. stoppage in transitu.

112. Refer to No. 11 1. After obtaining actual possession of the goods, Salvosa offered them
for sale at public auction. Based on the foregoing facts, which of the following statements is
incorrect pertaining to the sale of the goods?
Answer: a. Salvosa may bid at the public auction provided there is notice of his participation.

113. Brothers Antonio, Benito, Carmelo and Donatorite are co-owners of an agricultural lot
which they inhed from their parents. Antonio sold his undivided share in the property to
Teodulfo. Either Benito, Carmelo and Donato may purchase Antonio's share in the property
from • Teodulfo by virtue of their right of:
Answer: a. legal redemption.

114. D, owner of certain goods, deposited the goods with W, a warehouseman, who
issued to D a warehouse receipt which states that The goods are to be delivered to the order.
of D.' D may negotiate the warehouse receipt by any of the following means, except by:
Answer: a. mere delivery.

115. S delivered a diamond ring to B for B's necklace worth P10,000.00 and cash of
P15,000.00 which B is scheduled to deliver one week after their agreement. The contract
between S and B was not in writing. The contract between S and B is:
Answer: b. an enforceable contract of sale.

116. These contracts are presented to you for evaluation:

I. A contract for the delivery of an article which is manufactured in the ordinary course of
business, but the article was not available at the time of the contract was executed.
II. II. A contract for the delivery of an article to be manufactured specially for the customer
and upon his special order.
In your evaluation of the said contracts:
Answer: C. i refers to a contract of sale; II refers to a contract for a piece of work.

117. These statements are presented to you:

I. The sale of a thing having a potential existence is not effective if the thing does not come
into existence.
II. . The sale of hope or expectancy produces effects even if the thing hoped for does not
come into existence.
In your evaluation of the foregoing statements:
Answer: a. Both are true

118. The following terms are presented to you:

I. Contract to sell.
II. . Sale or return.
III. Sale on trial.
IV. Agency to sell.
Upon the delivery of the goods by the owner thereof to the other party, ownership is not
transferred in:
Answer: b. I, Ill and IV.

119. The following are characteristics of certain contracts:

i. Nominate Real
ii. Aleatory
iii. Commutative
A contract for the sale of a sweepstakes ticket is considered as:
Answer: c. I and III.

120. These statements are presented to you for evaluatio

i. Option money is part of the purelase price. .
ii. Earnest money is proof of the perfection of contract of sale.
In your evaluation of the said statements:
Answer: d. Only ii is true

121. S sold a computer to B for P120,000.00 under the following terms: P20,000.00 down;
balance payable in 10 equal monthly installments with an acceleration clause. To secure
payment of the balance, B executed a chattel mortgage on the computer and a real mortgage
on his lot. After paying the first two installments, B defaulted in the payment of the third,
fourth and fifth installments. S wants to recover in full the balance of P80,000.00 even in case
of deficiency so he consults you on which of the following courses of action to take to achieve
that purpose:
1. Exact fulfillment of the balance by suing B and have the computer sold for the execution
of the judgment against B.
2. Foreclose the chattel mortgage on the computer.
3. Foreclose the real mortgage on the lot.
Based on your evaluation of the foregoing data, the course of action that you will likely
recommend to S to achieve his purpose is:
Answer: c. Either 1 or III

122. On January 5, Samonte, who was going abroad as an immigrant, offered to sell his car
for P150,000.00 to Baldriga. He informed Baldriga, however, that he wanted to rent the car
for P1,000.00 per day up to January 15 as soon as the sale is executed since his flight was
not scheduled until January 16. Raldriga accepted both offers, and accordingly, he and
Samonte executed a contract of sale and a contract of lease simultaneously on the same
day, January 5. All the while, Samonte remained in physical possession of the car until
January 10 when the car was stolen without his fault. The car was never recovered.
Answer: b. Baldriga must bear the loss because he acquired ownership of the car despite its
lack of physical delivery to him

123. S who is based in Manila, shipped FOB Cebu goods worth P50,000.00 to 13. While the
goods were on their way to Cebu, S was informed by his bank that the check remitted by B
was dishonored for insufficient funds. Accordingly, S notified the carrier not to proceed with
the delivery and that he was taking possession of the goods. Based on the foregoing facts,
which remedy is available to S?
Answer: d. Neither resale nor rescission.

124.
Answer: Before perfection in a sale by auction:
I. Any bidder may withdraw his bid.
II. The auctioneer may withdraw the goods from the sale unless the auction has been
announced to be without reserve.
The statement is true for:
Answer: a. Both I and II

125. The following contracts of sale are I to you:

I. S sold a certain ring to B. It turned out that the ring was stolen from 0, its true owner.
II. Ii. S, a jewelry store sold a certain ring to B. The ring, however, actually belongs to 0
who had lost it a few days earlier.
III. S, a pawnshop, sold at a public auction a certain ring with B as the winning bidder. 0,
however, is the true owner of the ring but the pawnshop thought it was owned by X, a
defaulting borrower of the pawnshop..
In your evaluation of the above sales, B acquired title to the ring in:
Answer: b.. II and Ill.

126. Refer to No. 125. 0 may recover the ring from B without the need of reimbursement in
Answer: a. I only.

127. S sold a brand-new electric typewriter to b' for P20,000.00 on a credit term of 30 days.
The agreement between the parties provides that B may return the typewriter within the same
period. Ten days after delivery to B, burglars entered the office of B and carted away various
valuables including the typewriter he bought from S.
Answer: a. B must pay the price of the typewriter to S.

128. The following statements are presented to you

I. A bearer document of title if it is specially indorsed can be negotiated thereafter only by
indorsement completed by delivery
II. . A bearer negotiable instrument if it is specially indorsed can be negotiated thereafter
only by indorsement completed by delivery.
In your evaluation of the foregoing statements
Answer: c. Only I is true.

129. S sold to B a specific car for P200,000.00. The terms of the sale provide the following:
down payment of P40,000.00; balance payable in 8 equal monthly installments of P20,000.00
each, with a real estate mortgage to be executed by B on his lot to secure the said balance.
After paying 3 installments, B defaulted in the payment of 3 more installments. Based on the
foregoing facts, the following remedies were presented to B: I. Exact fulfillment of the
obligation.
ii. Cancel the sale.
iii. Foreclose the real mortgage on the lot and recover any deficiency in the foreclosure
sale.
If you were B, the remedy that you may avail yourself of is:
Answer: d. any of the three remedies presented.

130. An unpaid seller may avail himself of the following remedies, except the right to:
Answer: c. buy the goods at any public sale if he decides to resell them.

131. S sold his lot to X on April 1, 2015. The deed of sale was duly acknowledged by the
parties before a notary public. However, X did not take physical possession of the lot. On
April 10, 2015, S sold the same lot to 'Y under a deed of sale which was still to be notarized.
Y immediately took physical possession of the lot. Y was not aware of the previous sale to X.
When X visited the property, he found Y already building a structure thereon. It was also then
that he discovered that S had sold the same lot to Y.
Answer: a. The lot belongs to X.

132. A contract of sale is perfected upon the:

Answer: b. delivery of the object of the contract to the buyer.

133. These statements are presented to you:

I. It is part of the purchase price.
II. It is paid before the contract of sale is perfected.
III. When given, it entitles the party making the payment to hold the recipient from offering
the object of the contract to other persons within the period agreed upon.
IV. It is proof the perfection of the contract of sale.
Based on your evaluation of the foregoing statements, which of the following is true?
Answer: b. Il and III refer to option money

134. Orlando is the owner of an agricultural lot consisting of 9,000 square meters (or .9
hectare). The lot is surrounded on the North by Nonato's lot consisting of 7,000 square
meters; on the East, by Espino's lot consisting of 6,500 square meters; on the South, by
Serrano's lot consisting of 8,500 square meters; and on the West, by the road, across which
was Wagan's lot consisting of 6,300 square meters. Orlando donates the lot to Benito, his
brother, who is the owner of several rural lots in the area. Of the adjoining owners, only
Serrano expressed to Benito his desire to redeem the lot. The right of legal redemption is
available to:
Answer: d. None of the adjoining owners may avail himself of the right of legal redemption
including Nonato.

135. Barrameda visited the furniture store of Farralea to buy window frames for his house
which was undergoing construction. Not finding any window frame of his liking, he made a
sketch of the design he wanted and asked Farrales if he could make four pieces of the
specification for delivery after one week. Farrales answered that he could at the price of
P2,000.00 per frame. The window frames ordered by Barrameda was of such odd shape and
design that when completed and installed, Barrameda's house would be the only one in the
community that had windows of such type. Barrameda left the sketch with Farrales who did
not ask any down payment since he had previously transacted with Barrameda and knew
him. During all the time that Barrameda and Farrales were dealing with each other, Arnulfo,
the assistant of Farrales, was present. When the window frames were finished, Farrales
proceeded to the house of Barrameda to deliver them but Barrameda refused to accept them
saying that he had changed his mind, and that at any rate, the contract was unenforceable,
not being in writing.
Answer: c. The contract is enforceable even if no writing was executed by the parties.

136. Refer to the preceding number. What contract was entered into between Barrameda and
Farrales?
Answer: b. Contract for a piece of work.

137. A contract for a piece of work is different from a contract of sale in that in a contract for a
piece of work:
Answer: a. the Statute of Frauds does not apply.

138. Which of the following statements is common to both sale or return and sale on trial?
Answer: d. In case the thing is lost through a fortuitous event after the lapse of the time to
keep or return it and the buyer was still in possession of it, the risk of loss is with the buyer.

139. The full payment of the price is a positive suspensive condition in:
Answer:d. sale on trial.

140. The non-payment of the price is a negative resolutory condition in:

Answer: b. contract of sale.

141. When there is a stipulation-exempting the vendor from the obligation to answer for
eviction and the vendee made the waiver with knowledge of the risks of eviction and
assumed the consequences, such waiver is known as:
Answer: a. waiver intencionada.

142. In case of eviction, the vendor shall be liable to the vendee only for the value of the thing
sold at the time of eviction in which of the following cases?
Answer: b. When there is waiver consdente

143. S and B entered into a contract for the sale of the car of S to B for P100,000.00. In
reality, however, B did not give any amount to S because the latter intended to donate the car
to B. In this case:
Answer: b. The contract between S and B is a valid contract of donation.

144. On July 1, Serena sold to Berbola through a private instrument a specific piano for
P20,000.00. Simultaneous. with the sale, the parties agreed that Serena would lease the
piano for one week in preparation for a concert after which Berbola could physically get the
piano. Before the week was, over, Serena sold the same piano, also in a private instrument
and for P25,000.00, to Jezebel who immediately loaded the piano in her van. Neither Berbola
nor Jezebel was aware of the sale made to the other. Who is the owner of the piano?
Answer: a. Berbola

145. B bought two carabaos, one male and one female, from S. He paid P2,000.00 and
P3,000.00, respectively, for the animals which he intended to use for breeding. Later, the
female carabao was found unfit for breeding because of redhibitory defect.
Answer: b. B can rescind the sale of both animals because hi would not have bought the
male carabao withou the female carabao.

146. What may the consideration consist of in an optim contract in order to bind the offerer?:
Answer: c. Either (a) or b

147. The following statements pertaining to sale by auction are presented to you:
i. . The auctioneer may not withdraw the goods from the auction sale if the sale was
announced to be without reserve.
ii. The auctioneer may withdraw the goods from the auction sale if the sale was announced
to be with reserve.
In your evaluation of the foregoing statements:
Answer: a. Both statements are true.

148. Under the Maceda Law, in determining the number of installments paid by the buyer, the
following payments are included, except:
Answer: d. none of the foregoing.

149. Necessaries include everything indispensable for sustenance, clothing and medical
attendance, and which of the following?
Answer: d. All of the foregoing

150. While her parents were away on a visit to the province, M, 17 years old, entered into a
contract for the purchase of textbooks prescribed in his course and an expensive evening
gown. Which sale to NI is/are considered valid and binding, i.e., not voidable?
Answer: a. The sale of the textbooks

151. B bought a refrigerator from S for P20,000.00 which is payable in 20 installments

at P1,000.00 per month. After paying 6 installments, B defaulted in the payment of the
seventh and eight installments. Should S decide to exact fulfillment of the obligation, how
much, as a rule, may S collect from B?
Answer: a. The total amount of installments defaulted, i.e., P2,000.00.

152. A, B and C were the co-owners of a lot in the ratio of 1:2:1. A died. He was succeeded to
the property by S. his son and heir. Who may redeem the lot of A from S?
Answer: d. Neither B nor C may exercise the right of legal redemption.
153. When is the vendor bound to deliver the thing sold?
Answer: c. If the buyer has been given the benefit of the period.

154. These statements concerning the double sale of an immovable are presented to you:
i. . The first buyer who was in good faith at the time the sale was made to him, remains in
good faith notwithstanding that he subsequently obtains knowledge of the second sale.
ii. In order that the second buyer may be given preference, he must possess good faith
from the time of sale in his favor until the registration of the same.
In your evaluation of the foregoing statements
Answer: a. Both statements are true.

155. A credit right is considered to be in litigation: Answer:

Answer:b. when the debtor has filed his answer to the complaint.
 156. D owed C P100,000.00. The debt is evidenced by a promissory note and secured by a
mortgage of D's lot. Before due date, C assigned his credit right to T by executing a deed of
assignment but without the parties informing D. On due date, T went to D to collect the debt
at which time D learned of the assignment.
Answer: c. T can collect from D but if D cannot pay, T can foreclose the mortgage which is
deemed assigned together with the credit right.

157. What does the assignor of a credit warrant?

Answer: a. The legality and existence of the credit.

158. The right of pre-emption differs from the right of redemption in that in pre-emption:
Answer: b. the action is directed against the seller.

159. The following are certain modes of acquisition of property:

i. Purchase
ii. Dation en pago
iii. Succession
iv. Donation
Legal redemption is available when the transferee acquired the property through:
Answer: a. l or II

160. A sale between husband and wife is valid in which of the following cases?
Answer: a. When a separation of property has been agreed upon in the marriage settlements
or when there has been a judicial separation of property.

TRUE OR FALSE.

F 1. Warranty against eviction is inherent in a contract of sale; hence, it is an essential element

thereof.
F 2. Dacion en pogo partakes of the nature of a sale; hence, there is more freedom in fixing the
price of the thing conveyed.
F 3. A contract for a piece of work must comply with the Statute of Frauds. Accordingly, it must be
in writing to be enforceable if the price is P500.00 or more.
F 4. A sales contract requires the delivery of the thing sold for its perfection.
T 5. If the consideration received for a thing is another thing and a monetary consideration and the
intention of the parties does not clearly appear, the contract will be considered a contract of
barter if the value of the property consideration is greater than the monetary consideration.
T 6. In a contract to sell, the full payment of the price is a suspensive condition which upon
fulfillment will require the execution of a contract of sale.
T 7. It is not necessary that the vendor of a thing must be the owner thereof at the time of sale as
long as he can transfer its ownership to the buyer upon delivery.
T 8. The sale of hope or expectancy is valid even if the thing hoped for does not come into
existence.
T 9. If the sale of a piece of land is made through an agent, the authority of the agent must be in
writing for the sale to be valid.
T 10. In a sale by auction, any bidder may retract his bid before the sale is perfected.
T 11. If a "by-bidder" or "puffer' is employed by a seller without notice in sale by auction, the sale
may be treated as fraudulent by the buyer.
F 12. The ownership of the thing sold is transferred upon the perfection of the contract of sale.
T 13. A unilateral promise to buy or sell a determinate thing at a certain price is binding upon the
promissor if the promise is supported by a consideration distinct from the price.
T 14. Earnest money is part of the purchase price of a thing; hence, deductible from the total
selling price.
T 15. In sale of personal property payable in installments, the seller may exact fulfillment of the
buyer's obligation when the buyer defaults in the payment of one or more installments.
T 16. In sale of real property where the buyer has defaulted after paying at least 2 years
installments, he shall be entitled to pay, without additional interest, the unpaid installments
due within the grace period earned by him.
F 17. The purchase by a guardian of the property of the person under his guardianship is valid.
T 18. The buyer shall be entitled to the fruits of the thing sold from the time of the perfection of the
contract.
T 19. The delivery of incorporeal property may be made through the exercise by the vendee of his
rights ,:ith the consent of the vendor.
F 20. If goods are sold on "sale or return°, the risk of loss of the thing sold remains with the seller
after its delivery to the buyer.
F 21. In "sale on approver, the buyer becomes the owner of the thing upon delivery, but he may
revert such ownership to the seller by returning it.
T 22. The delivery of specific goods to a carrier or other bailee for the purpose of transmission to
the buyer generally transfers ownership of the goods to the buyer.
T 23. When a thing is purchased from a merchant's store, fair or market, the buyer acquires title to
the thing although the seller may have stolen it or acquired it from a thief.
T 24. A warehouse receipt is also a contract between the warehouseman and the depositor of the
goods.
T 25. A bearer document of title becomes an order document of title if it is specially indorsed.
T 26. The delivery of an order document of title without any indorsement does not constitute
negotiation.
F 27. A negotiable document of title becomes non-negotiable if it is stamped with the mark "non-
negotiable'.
F 28. If the goods sold are in the possession of a third person, the seller is deemed to have
delivered the goods to the buyer if the third person acknowledges to the buyer that he holds
the goods in the buyer's behalf.
T 29. If a period has been fixed for the payment of the price which has not yet arrived, the seller in
the meantime is bound to deliver the thing sold.
F 30. An unpaid seller exercising his right to resell the goods may buy the goods either directly or
indirectly.
T 31. When an unpaid seller exercises his right of stoppage in transitu, the contract of carriage
ceases, the carrier becoming liable as a depositary.
T 32. If real estate is sold for a lump sum, the vendor is bound to deliver all that is included within
the boundaries stated in the contract although the actual area is greater than that stated in the
contract.
F 33. If the same immovable is sold to two or more persons who are all in good faith, ownership
shall belong to the buyer who first paid its price.
F 34. In order that the buyer may enforce the seller's liability for breach of warranty against
eviction, the judgment depriving the buyer of the thing must first be appealed by the buyer.
T 35. The vendor's liability for breach of warranty against eviction may be validly waived by the
vendee. However, the vendor will still be liable if the waiver was made by the vendee without
knowledge of the risks of eviction.
T 36. As a rule, the vendor shall not be liable for a non-apparent easement that is recorded in the
Registry of Property.
T 37. The vendor shall be liable generally for any defect on the thing sold even if he was not
aware thereof.
T 38. When animals are sold as a pair, the vendee may ask for the rescission of the sale of both
animals although only one of them suffers from a redhibitory defect.
F 39. The sale of animals suffering from contagious diseases is voidable.
T 40. There is no warranty against hidden defects of animals sold at fairs or at public auctions, or
of animals sold as condemned.
F 41. Acceptance of the goods by the buyer generally discharges the seller from his liability for
any breach of warranty.
F 42. If the buyer is justified in refusing to accept the goods, he shall be obliged to hold the goods
as depositary.
T 43. The buyer is obliged to pay interest on the price of the goods for the period between the
delivery of the goods and the payment of the price if the thing sold produces fruits or income.
F 44. The buyer may suspend the payment of the price of the thing purchased by reason of
trespass on the thing.
F 45. A stipulation that the sale of an immovable is automatically rescinded upon the default of the
buyer in the payment of the price is valid.
F 46. In conventional redemption, the creditors of the vendor may make use of the right of
redemption against the vendee although they have not exhausted the properties of the
vendor.
T 47. In case of doubt, a contract purporting to be a sale with a right to repurchase shall be
construed as an equitable mortgage.
F 48. For an assignment of credit to be binding against third persons if a movable property is
involved, the same must be in a public instrument and recorded in the Registry of Property.
T 49. A debtor who has paid his creditor before he learns of the assignment of his debt shall be
released from his liability to the assignee.
F 50. The debtor's consent is required for the validity of the assignment of the credit made by his
creditor to another person.